IDEAS home Printed from https://ideas.repec.org/p/gtr/gatrjs/afr223.html
   My bibliography  Save this paper

Green Accounting and Firm Value

Author

Listed:
  • Nico Alexander

    (Trisakti School of Management, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - The environment is one of the more interesting issues to discuss, especially if it relates to companies' accounting issues. This study was conducted to determine the effect of green accounting implementation on firm value. Methodology/Technique - Firm value is measured using Tobins-Q, and green accounting is measured by ratings based on PROPER. Multiple regression analysis was used, and 35 manufacturing companies were sampled in this study. Findings - The results of this study show that green accounting can increase firm value. Companies that apply green accounting have a higher firm value because information about environmental costs is additional information for stakeholders when making decisions. If the company does not incur environmental costs, it is considered bad for investment. Novelty - Green accounting is still new, so this study was conducted to provide an overview of green accounting and firm value. Companies implementing green accounting will increase their firm value and help preserve the environment. It is hoped that Indonesian accounting organizations will develop standards regarding green accounting. Type of Paper - Empirical."

Suggested Citation

  • Nico Alexander, 2023. "Green Accounting and Firm Value ," GATR Journals afr223, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr223
    DOI: https://doi.org/10.35609/afr.2023.7.4(2)
    as

    Download full text from publisher

    File URL: http://gatrenterprise.com/GATRJournals/AFR/pdf_files/AFR-Vol-7(4)/2.Nico%20Alexander.pdf
    Download Restriction: http://gatrenterprise.com/GATRJournals/online_submission.html
    File URL: https://libkey.io/https://doi.org/10.35609/afr.2023.7.4(2)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Berry & Joan Junkus, 2013. "Socially Responsible Investing: An Investor Perspective," Journal of Business Ethics, Springer, vol. 112(4), pages 707-720, February.
    2. repec:dau:papers:123456789/7349 is not listed on IDEAS
    3. Gunther Capelle-Blancard & S. Monjon, 2012. "Trends in the literature on socially responsible investment: Looking for the keys under the lamppost," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00733402, HAL.
    4. Kaveh Asiaei & Nick Bontis & Raziye Alizadeh & Mehdi Yaghoubi, 2022. "Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 76-93, January.
    5. Dian Agustia & Tjiptohadi Sawarjuwono & Wiwiek Dianawati, 2019. "The Mediating Effect of Environmental Management Accounting on Green Innovation - Firm Value Relationship," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 299-306.
    6. Candy Chamorro Gonzalez & Ketty Herrera Mendoza, 2021. "Green accounting in Colombia: a case study of the mining sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 6453-6465, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koenigsmarck, Markus & Geissdoerfer, Martin, 2023. "Shifting the Focus to Measurement: A Review of Socially Responsible Investing and Sustainability Indicators," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 136617, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Naeem, Muhammad Abubakr & Anwer, Zaheer & Khan, Ashraf & Paltrinieri, Andrea, 2024. "Do market conditions affect interconnectedness pattern of socially responsible equities?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 611-630.
    3. Agus Joko Pramono & Suwarno Suwarno & Firdaus Amyar & Renny Friska, 2023. "The Effect of Environmental Management Accounting and Control System Integration on Sustainability Orientation through Sectoral Green Economy Mediation," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 348-354, September.
    4. Luluk Widyawati, 2020. "A systematic literature review of socially responsible investment and environmental social governance metrics," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 619-637, February.
    5. Marzhan Beisenbina & Laura Fabregat‐Aibar & Maria‐Glòria Barberà‐Mariné & Maria‐Teresa Sorrosal‐Forradellas, 2023. "The burgeoning field of sustainable investment: Past, present and future," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 649-667, April.
    6. Emiel Duuren & Auke Plantinga & Bert Scholtens, 2016. "ESG Integration and the Investment Management Process: Fundamental Investing Reinvented," Journal of Business Ethics, Springer, vol. 138(3), pages 525-533, October.
    7. Saheli Nath, 2021. "The Business of Virtue: Evidence from Socially Responsible Investing in Financial Markets," Journal of Business Ethics, Springer, vol. 169(1), pages 181-199, February.
    8. Markus Koenigsmarck & Martin Geissdoerfer, 2023. "Shifting the Focus to Measurement: A Review of Socially Responsible Investing and Sustainability Indicators," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    9. Cedric E. Dawkins, 2018. "Elevating the Role of Divestment in Socially Responsible Investing," Journal of Business Ethics, Springer, vol. 153(2), pages 465-478, December.
    10. Marta Szczepańczyk & Paweł Nowodziński & Adam Sikorski, 2023. "ESG Strategy and Financial Aspects Using the Example of an Oil and Gas Midstream Company: The UNIMOT Group," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    11. Matthew W. Sherwood & Julia L. Pollard, 2018. "The risk-adjusted return potential of integrating ESG strategies into emerging market equities," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 8(1), pages 26-44, January.
    12. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    13. Pruthiranjan Dwibedi & Debasis Pahi & Antarjyami Sahu, 2024. "Mapping the landscape of environmental, social and governance research: A bibliometric analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3745-3767, September.
    14. Alena Kocmanová & Marie Pavláková Dočekalová & Tomáš Meluzín & Stanislav Škapa, 2020. "Sustainable Investing Model for Decision Makers (Based On Research of Manufacturing Industry in the Czech Republic)," Sustainability, MDPI, vol. 12(20), pages 1-27, October.
    15. Onur Kemal Tosun, 2017. "Is corporate social responsibility sufficient enough to explain the investment by socially responsible funds?," Review of Quantitative Finance and Accounting, Springer, vol. 49(3), pages 697-726, October.
    16. Andreas G. F. Hoepner & Lisa Schopohl, 2020. "State Pension Funds and Corporate Social Responsibility: Do Beneficiaries’ Political Values Influence Funds’ Investment Decisions?," Journal of Business Ethics, Springer, vol. 165(3), pages 489-516, September.
    17. Mirza, Nawazish & Naeem, Muhammad Abubakr & Ha Nguyen, Thi Thu & Arfaoui, Nadia & Oliyide, Johnson A., 2023. "Are sustainable investments interdependent? The international evidence," Economic Modelling, Elsevier, vol. 119(C).
    18. Alexandra Huang, 2019. "Déterminants des encours nationaux socialement responsables : Une analyse exploratoire internationale," Working Papers hal-02242796, HAL.
    19. Bert Scholtens & Riikka Sievänen, 2013. "Drivers of Socially Responsible Investing: A Case Study of Four Nordic Countries," Journal of Business Ethics, Springer, vol. 115(3), pages 605-616, July.
    20. Anett Wins & Bernhard Zwergel, 2016. "Comparing those who do, might and will not invest in sustainable funds: a survey among German retail fund investors," Business Research, Springer;German Academic Association for Business Research, vol. 9(1), pages 51-99, April.

    More about this item

    Keywords

    Green Accounting; Firm Value; Green Investment; PROPER; Indonesia.;
    All these keywords.

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gtr:gatrjs:afr223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Abd Rahim Mohamad (email available below). General contact details of provider: http://gatrenterprise.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.